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Rumors in FX market that Citi will be nationalised over the week end.
Naturally the nationalization rumor about Citi is even more reason for the dollar to rally (Orwellian terms) and why the US intervened to makes sure it did so.
Before the market opened, JP Morgan came out with its quarterly results:
JPMorgan Profit Drops 76 Percent on Asset Writedowns
Jan. 15 (Bloomberg) — JPMorgan Chase & Co., the second- largest U.S. bank by assets, said profit fell 76 percent as rising defaults and the U.S. recession forced the bank to write down $2.9 billion of assets and boost reserves for bad loans.
Fourth-quarter net income was $702 million, or 7 cents a share, compared with $2.97 billion, or 86 cents, a year earlier, the New York-based bank said today in a statement. That included a $1.3 billion gain from closing a joint venture and “risk- management results,” the company said. Without the gains, JPMorgan lost 28 cents a share….
www.bloomberg.com/apps/news?
pid=20601087&sid=aJnpIea7sSZQ&refer=home
-END-
“risk- management results,” … you mean like manipulating the gold market by colluding with our government and wiping out speculators in the process?
The concern over our entire financial system is growing everywhere, which is why the Orwellians keep intervening to prop up the dollar. It is beyond noticeable at this point. They are petrified of a PANIC! … which is why they are going bonkers behind the scenes to make JP Morgan look as viable and healthy as they can. This is the Fed’s bank and everyone knows it. Should it look like a Citi, and now Bank of America, it could start a run on the dollar like never seen before. Therefore, the effort to beautify JP Morgan is foremost in their thoughts … which is why it draws kudos from The Muppets as the best big bank out there, and by a wide margin.
What is so scary is that NONE of The Muppets are paying attention to JP Morgan’s monstrous derivatives book, which all of us in The Café are well aware of. It dwarfs all the other banks by a mile … make that miles. If IT is blowing up, as we have heard for over a month, GOOD GRIEF! Now with Citi and Bank of America on the ropes, we could actually be close to the worst financial nightmare imaginable, as the Fed is ALREADY stretched beyond belief.
And to think most of this nightmare stems from something so simple as The Gold Cartel rigging the price of gold over the last decade. No need to report my same schtick, but it is so true. And yet nothing changes. GATA is still not allowed to present our findings to the American public, as we are blackballed by the American free financial press. Even our $264,400 full-page color ad in the WSJ was ignored by them. Our prediction of “catastrophe” and “disaster” was ignored too. Yet, here we are.
Gold made a new low late in the day, dropping to $800.90. However, it quickly rebounded. In the Access Market it has risen to $810. Of note is that the London trader for our STALKER source got his 10% correction almost to the penny. Perhaps he was the late buyer.
And perhaps just the right timing from another angle … from a fellow Café member…
here i attached SP cash, divided by gold as priced by london gold fix. Very interesting. I also attached a chart of what gold did, when this ratio broke in 1976, it was the low of the move before we exploded!
Silver didn’t want to go down much all day and feels like it is ready to take off for $11 very soon. Then, up from there.
The gold open interest fell 4,461 contracts to 313,729, as the specs continued their predicable liquidation. The silver open interest rose 229 contracts to 86,145.
A few laughs time … Remember Abbot and Costello’s Who’s On First Comedy routine? …
www.dailymotion.com/video/x14nx2_abbot-costello-whos-on-first_fun
